We’ve already got cryptocurrencies, crypto games, and art, as well as a variety of financial applications that contribute to blockchain mass adoption. On the other hand, we have organizations that use the technology as a powerful tool for improving the world’s economic system and are helping out those in need.
Kiva is one of those amazing and inspiring projects.
Kiva is an international nonprofit organization founded in 2005 in San-Francisco. It has a simple yet strong idea — fight poverty with the help of enthusiastic individuals. The organization connects lenders and borrowers with each other and opens new doors for people in need. On September 27, 2018, the company announced the first implementation of Kiva Protocol in Sierra Leone.
The country only has one credit bureau that covers 2,000 people and only 20% of Sierra Leone’s population has bank accounts. Kiva protocol is a digital identification system designed to use distributed ledger technology to give people secure and complete ownership of their personal data and information.
How does it work?
When a lender makes a loan, the system sends the borrower a signed, verifiable claim with the details of that loan. The borrower accepts the verifiable claim and posts it to their private credit ledger in their digital Kiva wallet. The same happens with repayment — when a borrower pays back a loan, the lender is sent a verifiable claim that the borrower approves and it is posted to their ledger.
Anyone can become a lender and take part in making the world a little bit happier. Your loans will provide not only needed capital but will help borrowers build a future where they can access other financial services as well.
Introducing Kiva protocol in Sierra Leone was just the beginning. The organization has plans to bring this much further.